Telcos, non-bank lenders spurn demands to fund financial counsellors

The Albanese government is at loggerheads with the buy now, pay later sector, non-bank lenders and most telecommunications providers after they refused requests toAlthough the banks, energy retailers, bookmakers, insurers and Telstra have agreed to kick in, the intransigence of other players could prompt the government to impose a mandatory scheme to raise funds.

Social Services Minister Amanda Rishworth is pushing industry to contribute to financial counselling for indebted customers.The Hayne banking royal commission floated that an industry levy could be one way to ensure counselling providers be made sustainable and expanded to assist vulnerable consumers left indebted by financial services products.Taxpayers fund services with $50 million a year, while the government is seeking $18 million annually from industry.

The government has been negotiating with relevant sectors but Social Services Minister Amanda Rishworth in May said they had until the end of August to sign up.The Australian Banking Association has agreed to provide $6.15 million, the Insurance Council $600,000, energy retailers $1.3 million and betting agencies $1.3 million. Telstra has broken with its lobby group, the Communications Alliance, to make an undisclosed contribution.

AFIA’s buy now, pay later members, which include the likes of Afterpay and Humm, are being asked for just $750,000. Afterpay contributed $US588 million in profit to its US owner Block in 2022, the companyAFIA’s membership of other credit providers, such as car loan specialists like Toyota Finance, have rebuffed the government’s request for $2.75 million.

Australia’s second-biggest telco, TPG Telecom, which operates the Vodafone, TPG, iinet and AAPT brands, this weekIt is understood Ms Rishworth is frustrated the companies have not been receptive to arguments that they should be good corporate citizens, especially in light of the modest contributions sought for a voluntary industry model.Connect with

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Aussie Broadband eyes Telstra customers as net profit soarsThe nation’s fifth-largest provider of broadband lifted its market share to 7.6 per cent from 6.5 per cent a year ago and is targeting 10 per cent by 2025.
Source: FinancialReview - 🏆 2. / 90 Read more »

MA Financial logs record fund flows as revenue slidesMoelis Australia’s investment banking revenue slumped 27 per cent, but asset management recorded record fund inflows.
Source: FinancialReview - 🏆 2. / 90 Read more »